$SOL
Understanding Take-Profit Order at $50 for 20x ROI
Placing a take-profit order at $50 is not a guarantee but an instruction to sell your position when the price reaches $50. The execution depends on market conditions such as liquidity and order book depth. Here's how it works:
Step-by-Step Calculation:
Position Overview:
Entry Price: $25.00
Leverage: 20x
Size: 77.556 USDT
Margin Used: $3.88 USDT
Target Price for 20x ROI:
Target Mark Price: $50.00
ROI Formula:
ROI = (Mark\ Price - Entry\ Price) \times Leverage \div Entry\ Price \times 100
ROI = (50 - 25) \times 20 \div 25 \times 100 = 2000\% \text{ (20x)}
Profit Calculation:
Unrealized PNL (Profit):
PNL = (Mark\ Price - Entry\ Price) \times Position\ Size
PNL = (50 - 25) \times 77.556 = 1938.9 \, USDT
Total Amount (Including Margin): Add your margin used ($3.88) to the profit:
Total = 1938.9 + 3.88 = 1942.78 \, USDT
How It Will Work:
1. Placing a Take-Profit Order:
Set a take-profit limit order at $50 in the Binance Futures trading platform.
The system will automatically close your position if the mark price reaches $50.
2. Execution:
If the price reaches $50 and there is enough liquidity in the order book, your position will close, and you will receive $1942.78 USDT.
Execution is subject to the availability of buyers at $50.
3. Slippage Risk:
If there’s low liquidity or high volatility, your order might execute slightly below $50. This could slightly reduce your realized profit.
Final Amount You’ll Receive:
If your take-profit order executes at $50, your total amount will be:
PNL: $1938.9 USDT
Margin Return: $3.88 USDT
Total: $1942.78 USDT
Things to Keep in Mind:
1. Market Conditions:
Ensure the token has sufficient trading volume and liquidity to support execution at $50.
Monitor the order book to avoid large price gaps.
2. No Guarantee:
While take-profit orders automate the process, their execution depends on market conditions at the time.
3. Risk Mitigation:
Consider setting a stop-loss order below the current price.
